Our primary goal as a wealth manager is to achieve each client’s specific investment objectives.

Asset Allocation Methodology

Explain the methodology you use in determining asset allocation models

Private Wealth Management does not utilize a predetermined “model” in which to fit a client. All portfolios are custom designed for the client based on the investment guidelines and the income or cash flow requirements. While it might be more efficient to utilize a “model portfolio” approach, Private Wealth Management is convinced the customized approach is more beneficial to the client for the mitigation of risk.

We follow a disciplined, multi-step process to ensure that every client receives an institutional-quality portfolio carefully tailored to meet their individual objectives. We use forward-looking capital markets assumptions regarding risk, return and correlations to optimize the asset allocation to build portfolios that maximize the expected return at each selected level of risk.

Depending on needs, goals and risk tolerance, a customized allocation within the portfolio may include: equities, taxable fixed income securities, exchange traded funds and taxable municipal bonds. Equity investments are further selected to represent a cross section of the various sectors in the economy and different investment styles.

Investments

A portfolio’s total return is largely determined by asset mix.
Research shows that more than 90% of the variablity of a portfolio’s relative performance can be attributed to asset allocation. Therefore, a broad allocation among the major asset classes (equities, fixed income and cash equivalents) is prudent in achieving our clients' investment objectives.

The principle behind asset allocation is that return characteristics of asset classes are different, and carefully selected combinations can be used to manage portfolio risk and return.
Risk is defined as volatility of returns. Volatility is measured using standard deviation. Standard deviation quantifies the range of returns we can expect to see over a given time period.

Investors must deal with the unpredictability of markets and returns over shorter time frames.
The predictability of returns and volatility over shorter time periods, even five to ten year time frames, involves uncertainty.

Successful asset allocation involves working through three steps:

• Understanding the capital markets, particularly expected return and risk of alternative asset classes.
• Knowing investment needs, including sensitivity to possible negative returns.
• Choosing a balanced portfolio that is consistent with financial needs and risk tolerance.

Customized Portfolio Solution

Private Wealth Portfolio Management		Open Architecture Platform Outside Asset Managers
Joe DeLuca and David Lackmann, the portfolio managers for Private Wealth Management, each have 15-20 years experience in managing assets for high net worth clients. They have consistently outperformed the S&P 500 and maintain a conservative, yet performance driven approach to managing money. They will work closely with clients to ensure all investment goals and objectives are achieved. Parker Stafford, an additional member of the PWM Investment Team, brings unique experience as an institutional bond specialist and assists in the designing and managing of fixed income portfolios for PWM clients.		Raymond James Consulting Services (“RJCS”) provides high net worth clients access to over 35 outside portfolio managers across all investment disciplines. In cooperation with Mercer Consulting, RJCS screens and partners with best-in-class managers to assist in constructing a diversified portfolio that maximizes risk-adjusted returns. When deemed appropriate, Private Wealth Management will craft a portfolio utilizing the managers that most closely fit with the client’s investment goals.